COMMERCIAL vehicle rental firm Northgate is planning to almost double its presence in the region.

The company will create more than 40 jobs which will be based at its headquarters in Darlington.

The recruitment follows a decision to move part of its operations from Birmingham.

Northgate formed a separate limited company called Northgate Vehicle Solutions on May 1 by merging two businesses, Norfleet Limited and Northgate Central Reservations Limited.

The move will make a more streamlined service for customers, according to projects manager David Hall.

He said: "We are building a division that will be a one-stop-shop for commercial vehicles.

"Our major business is hire of commercial vehicles. We are now looking to add-on products as well as hiring vans."

New services will include vehicle tracking, insurance and a central reservations department.

Architect Leigh Cooper Associates, which designed Northgate's £1.5m, 15,000sq ft building, has been brought in to design a 10,000sq ft extension at the Allington Way premises, in the Yarm Road Business Park.

The company also rewarded the building firm which built its head office.

J and R M Richardson Construction is building the £1m extension.

Mr Hall said: "The quality of work they did and the performance led us to look to them for the new construction."

The new business will set up operations in the premises on August 11.

The construction project is expected to be completed by the end of next month.

Northgate grew out of a business started by executive deputy chairman Alan Noble.

Noble Self Drive started in January 1981 and grew to incorporate Transmore Van Hire in Stockton on Tees and Caledonian Self Drive Limited in Newcastle.

A parent company, Northgate Motor Holdings Ltd, was established for the three hire locations.